Microsoft has worked with Qualcomm and AMD on custom chips in the past. | Photo by Amelia Holowaty Krales / The Verge

Microsoft is reportedly working on its own AI chips that can be used to train large language models and avoid a costly reliance on Nvidia. The Information reports that Microsoft has been developing the chips in secret since 2019, and some Microsoft and OpenAI employees already have access to them to test how well they perform for the latest large language models like GPT-4.

Nvidia is the key supplier of AI server chips right now, with companies racing to buy up these chips and estimates suggesting OpenAI will need more than 30,000 of Nvidia’s A100 GPUs for the commercialization of ChatGPT. Nvidia’s latest H100 GPUs are selling for more than $40,000 on eBay, illustrating the demand for high-end chips that can help deploy AI software.

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